BUSINESS INFORM JOURNAL.

УКР

ENG

Search:

REGISTRATION CERTIFICATE

KV #19905-9705 PR dated 02.04.2013.

FOUNDERS

RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE)

According to the decision No. 802 of the National Council of Television and Radio Broadcasting of Ukraine dated 14.03.2024, is registered as a subject in the field of print media.
ID R30-03156

PUBLISHER

Liburkina L. M.

SITE SECTIONS

Asymmetries of Economic Development and Trade Potential of Geopolitical Blocs
Lezhepokova V. G.

Lezhepokova, Viktoriia G. (2025) “Asymmetries of Economic Development and Trade Potential of Geopolitical Blocs.” Business Inform 8:72–79.
https://doi.org/10.32983/2222-4459-2025-8-72-79

Section: International Economic Relations

Article is written in Ukrainian
Downloads/views: 25

Download article (pdf) -

UDC 339.924

Abstract:
The stagnation of economic development indicators in highly developed countries of the world is contrasted by the rapid growth dynamics of emerging economies, which amplifies the risks of transforming socioeconomic contradictions into open geopolitical conflicts. In these circumstances, the study of asymmetries in economic development, which compete for spheres of influence among global coalitions of countries, becomes particularly relevant. The aim of this article is to analyze the economic development asymmetries of BRICS+ and the G7 as geopolitical blocs competing for global leadership and an alternative model of the world order. The article argues that since its inception, BRICS has created clear economic competition for the developed countries of the collective West, and its influence on the world stage will only continue to increase. The results of the analysis of the dynamics of economic development indicators and the expansion of trade potential among bloc countries have shown a reduction in economic development asymmetries between BRICS+ and the G7. In particular, there has been a confirmed rapid increase in the share of BRICS+ in global GDP at purchasing power parity, which has exceeded the corresponding share of the G7 countries since 2018. It has been demonstrated that, similarly to the leveling of economic development asymmetries, the gap between geopolitical blocs in international trade is also narrowing. The BRICS+ countries are increasing their share in global exports and imports of goods and are projected to surpass the G7 group by 2026. The analysis of the trade component of the Economic Complexity Index for BRICS+ and G7 member countries has confirmed the existence and deepening of asymmetries in the trade potentials of these competing geopolitical blocs. At the same time, it has been shown that as of 2024, the total exports of BRICS+ countries, which are global leaders in export volumes, remain significantly lower than those of the leading G7 countries. The expansion of BRICS+ exports is hindered, among other factors, by the lack of a common preferential trade regime among the member countries of the bloc, due to differing economic interests, incompatible customs regimes, and internal geopolitical tensions. It is argued that the G7 countries and the collective West as a whole need to rethink their approaches to global economic competition, focusing on developing effective adaptation and cooperation strategies that will ensure stable development amid shifts in the geopolitical balance and the emergence of new centers of economic growth.

Keywords: economic development asymmetry, international economic integration, trade imbalance, geopolitical bloc, economic complexity index, preferential trade regime, global competition.

Fig.: 2. Tabl.: 2. Bibl.: 20.

Lezhepokova Viktoriia G. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of World Economy, Kyiv National University of Trade and Economics (19 Kіoto Str., Kyiv, 02156, Ukraine)
Email: [email protected]

List of references in article

Agarwal, M., & Kumar, S. (2023). BRICS Countries’ Increasing Role in the world economy, Including Institutional Innovation. BRICS Journal of Economics, 4(2), 173–191. https://doi.org/10.3897/brics-econ.4.e99451
BRICS. (2025, January 20). BRICS Data. Retrieved from https://brics.br/en/about-the-brics/brics-data
Buresh, D. L. (2025). Financial Compliance in the BRICS and BRICS+ Countries Now and in the Future. International Journal of Social Science and Human Research, 8(6), 4512–4581. https://doi.org/10.47191/ijsshr/v8-i6-626
Business Standard. (2025, July 20). Brics+ group expected to surpass G7 in global trade by 2026: EY India. Retrieved from https://www.business-standard.com/economy/news/brics-group-expected-to-surpass-g7-in-global-trade-by-2026-ey-india-124103100815_1.html
The Economic Complexity Index. Retrieved from https://oec.world/en/resources/methods/eci-growth-predictions
Goldman Sachs Research. (2003, October 1). Dreaming with BRICs: The path to 2050. Retrieved from https://www.goldmansachs.com/insights/goldman-sachs-research/brics-dream
Goldman Sachs Research. (2007, November 23). BRICs and Beyond. Retrieved from https://www.goldmansachs.com/insights/goldman-sachs-research/BRICs-and-Beyond
Gyedu, S., Heng, T., Ntarmah, A. H., He, Y., & Frimpong, E. (2021). The impact of innovation on economic growth among G7 and BRICS countries: A GMM style panel vector autoregressive approach. Technological Forecasting and Social Change, 173, Article ID 121169. https://doi.org/10.1016/j.techfore.2021.121169
Iqbal, B. A. (2021). BRICS as a driver of global economic growth and development. Global Journal of Emerging Market Economies, 13(1–2), 1–2. https://doi.org/10.1177/09749101211067096
Kalyuzhna, N., & Khodzhaian, A. (2025). Institutionalization of trade agreements of asymmetrical partners: cointegration analysis. Naukovyi Visnyk Natsionalnoho Hirnychoho Universytetu, 3, 183–191. https://doi.org/10.33271/nvngu/2025-3/183
Nach, M., & Ncwadi, R. (2024). BRICS economic integration: Prospects and challenges. South African Journal of International Affairs, 31(2), 151–166. https://doi.org/10.1080/10220461.2024.2380676
Oryekhova, T. V., & Furman, T. Yu. (2023). Vpliv krain BRIKS na global'nu ekonomiku: retrospektivnij analiz ta perspektivi ekspansii [Influence of BRICS countries on the global economy: Retrospective analysis and expansion prospects]. Vcheni zapiski, 33(4), 138–151. https://ir.kneu.edu.ua/items/28ff5362-118c-423b-a8d1-e41767058490
Savchenko, M., Shkurat, M., & Nosachov, Ye. (2023). Rol' krain BRIKS u suchasnomu global'nomu ekonomichnomu prostori [The role of BRICS countries in the modern global economic space]. Galits'kij ekonomichnij visnik, 6(85), 199–206. https://doi.org/10.33108/galicianvisnyk_tntu2023.06.199
Statista. (2024). Leading export countries worldwide in 2024 in billion U.S. dollars. Retrieved from https://www.statista.com/statistics/264623/leading-export-countries-worldwide/
Statista. (2025). BRICS Plus and G7 countries' share of the world's total gross domestic product (GDP) in purchasing power parity (PPP) from 2000 to 2024. Retrieved from https://www.statista.com/statistics/1412425/gdp-ppp-share-world-gdp-g7-brics/
Statista. (2025). Combined gross domestic product (GDP) in purchasing power parity (PPP) of the BRICS Plus and G7 countries from 2000 to 2025 (in int. PPP dollars). Retrieved from https://www.statista.com/statistics/1412418/gdp-development-g7-brics/
Vakarchuk, K. V., & Silukova, D. D. (2024). Kraini BRIKS u rosijs'ko-ukrains'kij vijni: pozitsiya, zagrozi ta naslidki [BRICS countries in the Russian-Ukrainian war: Position, threats and consequences]. Mizhnarodni ta politichni doslidzhennya, 37, 13–22. https://doi.org/10.32782/2707-5206.2024.37.1
Yaya, O. S., Olayinka, H. A., Ogbonna, A. E., Al-Faryan, M. A. S., & Vo, X. V. (2024). Dynamic connectedness of economic policy uncertainty in G7 countries and the influence of the USA and UK on non-G7 countries. Economic Change and Restructuring, 57(2). https://doi.org/10.1007/s10644-024-09658-1
Yousefi, H., Ardehali, A., & Ghodusinejad, M. H. (2023). BRICS or G7? Current and future assessment of energy and environment performance using multi-criteria and time series analyzes. Energy Strategy Reviews, 49, Article ID 101164. https://doi.org/10.1016/j.esr.2023.101164
Yuan, S., Musibau, H. O., Gen?, S. Y., Shaheen, R., Ameen, A., & Tan, Z. (2021). Digitalization of economy is the key factor behind fourth industrial revolution: How G7 countries are overcoming with the financing issues? Technological Forecasting and Social Change, 165, Article ID 120533. https://doi.org/10.1016/j.techfore.2020.120533

FOR AUTHORS

License Contract

Conditions of Publication

Article Requirements

Regulations on Peer-Reviewing

Publication Contract

Current Issue

Frequently asked questions

INFORMATION

The Plan of Scientific Conferences

OUR PARTNERS

Journal «The Problems of Economy»

The site and its metadata are licensed under CC BY-SA.

Write to webmaster